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Baby Bloomer Suits

PRODUCT CODE QUALITY AND STANDARDS : 260308005 : The product is a fashion item and there is no such specification for this item, however, quality of the product depends upon the quality of the fabric. : May, 2003 : Small Industries Service Institute, Industrial Area-B, Ludhiana-141003 (Punjab). Tel. Nos.: 0161-531733-34-35. Fax : 0161-533225, E-mail : sisildh@ghdh.net.in Website: www.sisildh.com Telegram: SMALLIND

MONTH AND YEAR OF PREPARATION PREPARED BY

INTRODUCTION
Bloomer suits knitted are used by all the sections of the society for their children as a dress material. These bloomers have taken the place of textile items as these are available in very attractive designs and colours and are easy to wash. Bloomers are made out of the tubular blended knitted cloth, which is available in the local market. The pieces are cut as per the size and shape of the item and are stitched accordingly. Embroidery and patchwork is also done to make the attractive designs on the T-shirts, which is a part of the bloomer set.

attractive. These items suit each and every pocket as these are available in low as well as high prices, depending upon the quality of the fabric, designing and workmanship of the product. The demand of these suits in the rural as well as urban areas has shown that there is a good scope of such type of units, which can produce quality products. The scope for the export of these items to the Middle East countries and other European countries has further boosted the market of these items.

B ASIS AND PRESUMPTIONS

1. The Project Profile has been prepared on the basis of single shift of 8 hours each day, 25 days in a month and at 75% efficiency. 2. It is presumed that in the 1st year, the capacity utilisation will be 60% followed by 70% in the next year and 80% in the subsequent years.

MARKET POTENTIAL
There are number of units engaged in the manufacturing of bloomer suits, but even then the demand of these suits during the summer season is increasing day by day as these are cheap and

B A B Y BLOOMER SUITS

3. The rates quoted in respect of salaries and wages for skilled workers and others are the minimum rates prevailing in the State/Neighbouring States. 4. Interest rate for fixed and working capital has been taken @ 14% on an average, whether financed by bankers or by Financial Corporations. 5. Margin money required is minimum 30% of the project investment. 6. The rental value of the Workshed and other built up/covered area has been taken at the rate of Rs. 20.00 per square meter. 7. Pay back period of the project is 5 years after initial gestation period of one and half year. 8. The rates quoted in respect of machines, equipment and raw materials are those prevailing at the time of preparation of this Project Profile and are likely to vary from supplier to supplier and place to place. When a tailor made project profile is prepared necessary changes are to be made.

5. Installation of Machines 6. Electrification 7. Recruitment of Staff and Workers

1 month 1 month 1 month

TECHNICAL ASPECTS
Process of Manufacture Bloomer suits are made out of the tubular knitted cloth available in the local market. Tubular knitted cloth in different colours, counts and diameters is purchased from the market and is checked for the manufacturing defects. The cloth is laid on the cutting table for marking the shape and style of the suit. The shape is given by cutting the fabric by use of scissors or straight knife cutting machine. In case of printing or embroidery or patchwork is to be done for making the piece attractive, then these pieces are sent for the same in the market for getting these works on job work basis. Then, these pieces are stitched on industrial sewing machines i.e. sewing machine, over lock and flat lock machine. Stitched pieces are checked and pressed for final packing. These packed pieces are sent to the market for sale. Quality Control and Standards The product is a fashion item and there is no such specification for this item, however, quality of the project depends upon the quality of the fabric. Production Capacity (per annum)
Item Baby Bloomer Suits Qty. Amount (In Rs.) 12000 Dozens. 47,52,000

IMPLEMENTATION SCHEDULE
Sl.No.Activity Period 1. Preparation of Project Report: (i) Calling quotations 1 Month (ii) Preparation 2 Weeks
2. Provisional Registration as SSI 3. Financial Arrangement 4. Purchase and procurement of machines and equipments 1 week 3 Months 2 Months

Motive Power

10 H.P.

B A B Y BLOOMER SUITS

Pollution Control As the industry does not involve any pollution as such, no pollution control measures are required. Energy Conservation As the power requirement is small proper house keeping can save it.

Sl. Designation No. 3. Skilled Worker 4. Helpers

No. 8 3 Total

Salary (In Rs.) 3000 2250

Amount (In Rs.) 24000 6750 38000

Add Per-quisites @ 10% of salary

Total Or Say (ii) Raw Materials (per month) Particulars Dyed knitted PC cloth 1250 Kg @ Rs. 160 per Kg. Sewing thread, stickers, labels, polythene bags boxes etc. Total (iii) Utilities (per month) Power, Water Total

3800
41800 42000

FINANCIAL ASPECTS
A. Fixed Capital
( i ) B u il d i n g = 100 Sq. Mtrs. The building is considered rental with monthly rent of Rs. 2000 per month @ Rs. 20 per sq. mtr. (ii) Machinery and Equipments Sl. Description No. of Machines 1. High speed overlock machine with motor and Stand 2. High speed self lubricated flat lock stitch machine with motor and Stand 3. Elastic insertion machine with motor and stand 4. High speed lock stitch machine with motor and stand. 5. Rib cutting machine with stand and motor Qty. 3 Rate (In Rs.) 45000 Amount (In Rs.) 135000

Amount (In Rs.) 2,00,000 40,000 2,40,000 (Rs.) 5000 5000

60,000 1,20,000

(iv) Other Contingent Expenses (per month)(Rs.) 1. Rent of building 2000 5000 500 1000 500 1000 500 30,000 Total 40,500 2. Advertisement 3. Consumable Stores 4. Postage expenses/Telephone 5. Repairs and maintenance 6. Transport 7. Miscellaneous 8. Printing job work

80000

80000

15000

30000

5000 50000

5000 50000

6. Office furniture, L.S. cutting tools, pressing table, racks, electric press, scissors measuring instruments 7. Electrification, installation, taxes etc. @ 10% L.S.

(v) Total Recurring Expenses (per month) (Rs.) 1. Staff and labour L.S. 46000 2. Raw material 3. Utilities 4. Other contingent expenses Total 42,000 2,40,000 5,000 40,500 3,27,500

Total

4,66,000

B. Working Capital (per month)

(i) Personnel Sl. Designation No. 1. Supervisor/Manager 2. Peon/Chowkidar No. 1 1 Salary (In Rs.) 5000 2250 Amount (In Rs.) 5000 2250

(vi) Working Capital for 3 months = Rs. 327500 3 = Rs. 9,82,500

C. Total Capital Investment

(a) Fixed Capital (b) Working capital for 3 Months Total Rs. 4,66,000 Rs. 9,82,500 Rs. 14,48,500

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B A B Y BLOOMER SUITS

MACHINERY UTILISATION
75% machinery utilisation is considered for achieving the projected target.

(6) Break-even Point (% of Total Production Envisaged) (i) Fixed Cost (per year) a. Total Depreciation b. Rent c. Total interest (Rs.) 39,30,000 41,000 10000 2,02,790 41,83,790 4,18,4000 d. 40% of salary and wages e. 40% of other contingent expenses (excluding rent) Total (ii) Net Profit (per year) B.E.P. = = = (Rs.) 51,000 24,000 2,02,790 2,01,600 1,84,800 6,64,190 = Rs. 5,68,000

FINANCIAL ANALYSIS
(1) Cost of Production (per year) (a) Total recurring cost (b) Depreciation on machinery and equipments @ 10% (c) Depreciation on furniture, fixtures @ 20% (d) Interest on total investment @ 14% Total Say (2) Turnover (per year) Sl. Item No. Baby bloomer suits (3) Net Profit (4) Net Profit Ratio = = = (5) Rate of Return = = = Qty. Rate (Rs.) Value (Rs.) 47,52,000

Fixed Cost 100 Fixed cost + Profit 6,64,190 100 6,64,190 + 5,68,000 54%

Addresses of Machinery Equipment Suppliers

And

12000 396 Dozens per dozen

= Rs. 5,68,000 Net Profit 100 Turn over per year 5,68,000 100 4,75,2000 12% Net Profit 100 Total Investment 5,68,000 100 14,48,500 39%

1. M/s. Akal Mechanical Works Overlock Road, Indl. Area-B, Ludhiana. 2. M/s. Swaroop Mechanical Works Gali Wakila, Purana Bazar, Ludhiana. 3. M/s. Sodhi Sewing System Co. C-4, Caliber Plaza, Ludhiana. Raw Material Suppliers Easily available in the local market.